IndiaPE.Com 21 May 2012
Private equity and venture capital investors expect tempered growth of 10-25 percent in the PE industry during this calender year largely due to challenges in exiting investments and regulatory uncertainty.
According to the latest findings of Bain & Company’s India Private Equity Report, in 2011, the total deal value surged about 55 percent to USD 14.8 billion over the previous year, whereas this year over 65 percent private equity (PE) and venture capital (VC) investors surveyed expect moderate growth of 10-25 percent.
“We see 2012 building upon the strengths shown by PE in 2011, though there are some variables at play this year,” Arpan Sheth, who leads the PE practice for Bain & Company in India said, adding “growth will be somewhat constrained by challenges in exiting current investments and uncertainties around regulations.”
The report, which was produced in collaboration with the Indian Private Equity and Venture Capital Association (IVCA), further noted that PE players are becoming more selective about where they park their money as they look to ensure capital protection, better returns and appropriate liquidity.